Maryland’s Registers of Wills are raising concerns about the potential impact of Governor Wes Moore’s proposed tax reforms, particularly the plan to repeal the state’s inheritance tax. The inheritance tax currently provides most of the funding for the registers of wills offices, which play an essential role in estate administration and probate services across the state.
Governor Moore’s Tax Reform Proposal
Governor Moore has introduced a broad tax reform plan aimed at addressing a significant budget shortfall. The reforms promise tax cuts or no changes for more than 80% of taxpayers, while the top 18% of earners may see an increase. A key component of the proposal is repealing the inheritance tax, a measure that the administration says will simplify Maryland’s tax code.
Currently, Maryland is the only state that imposes both an inheritance tax and an estate tax. To offset some of the revenue loss from eliminating the inheritance tax, the proposal includes reducing the estate tax exemption from $5 million to $2 million. Immediate family members are exempt from the 10% inheritance tax, which typically applies to extended family or friends. Recent reports indicate that over half of inheritance tax revenue comes from individuals living outside Maryland.
Concerns From Registers of Wills
Maryland’s 24 Registers of Wills—one in each county and Baltimore City—are elected officials responsible for overseeing estate administration, appointing personal representatives, safeguarding wills, and collecting inheritance taxes. The inheritance tax generates 90% of their revenue, with the remainder coming from probate and miscellaneous fees.
Howard County Register of Wills Byron Macfarlane, a past president of the Maryland Register of Wills Association, emphasized how important inheritance tax revenue is to keep the registers running smoothly. "We play an essential role in our judicial process, and we want to make sure we can keep providing excellent service to those who need it," Macfarlane explained.
In the last fiscal year, the inheritance tax brought in $94 million. About $35 million covered the operating costs of the registers’ offices, with the rest going into the state’s general fund. Without this funding, the registers would need to find another way to stay financially sustainable.
State’s Response and Legislative Actions
Governor Moore’s team has said it plans to keep funding the registers of wills offices at their current levels through the state comptroller’s budget. However, it’s still unclear how the lost revenue will be replaced. Analysts estimate the funding gap could range from $20 million to $35 million.
“The Registers of Wills provide essential services to Maryland residents, and the governor fully supports their work,” said Carter Elliott IV, a spokesman for the Governor. While discussions about funding are ongoing, no specific plans have been finalized yet. Senate Budget and Taxation Committee Chair Guy Guzzone expressed optimism, saying, “Obviously, we can’t let the Registers of Wills go unfunded, so we’ve got to figure out a solution for that.”
Looking Ahead
The Registers of Wills offices remain hopeful that their funding needs will be addressed as part of the broader tax reform discussions. While Governor Moore’s proposal is intended to simplify the tax system and provide relief to many Maryland taxpayers, the path forward for replacing the revenue generated by the inheritance tax is still under review. Stakeholders and legislators are actively working to ensure that these vital offices can continue to serve Maryland residents effectively.
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